Legal Question in Business Law in Texas

We are a small national member club 501 c 7 incorp in Michigan that holds an event 1 x per year. Club members volunteer (non paid) to put on the event. The board had to remove the chair who lives in TX for not complying with board and club requirements. She was told to create a budget and fund raise for all items that the committee wished to purchase before purchasing anything. On the day she received a registered mail notice of her removal she submitted invoices for $2200 in what was claimed as prizes for this event. Besides no one on the committee or board being aware of these purchases there were also many discrepancies with the invoices. The board sent a registered letter to this person stating that the club would only pay for items it receives, and gave the following terms required for reimbursement. A deadline of 3 weeks to return, items returned in new condition, original receipts returned with the items. Items sent to the clubs treasurer. Once inventoried and matched to invoices and returned by the deadline given would be reimburse. She argued that she should not have to return them that she should be reimbursed and she is to reimbursed immediately and she would return the items at the time of the event 4 1/2 month away, the board responded by saying we stand by our original terms. She then sent a letter 2 days prior to her deadline to return stating the same message as before but, adding if she did not received a certified check from of in 10 days she would send us to small claims court. What are our options, how should be proceed, would a judge award her when we gave her option to reimbursed?


Asked on 6/16/14, 8:44 pm

1 Answer from Attorneys
Steven Frankoff Law Offices of Steven Frankoff

First you have to understand how small claims courts work in Texas. They are very informal and many of the rules of evidence and law are not applied properly. I would be wary of them. They can render a judgment up to $10,000. You should also know that you/ your entity can represent yourself without an attorney. If this person does proceed to small claims, there is no telling what would happen. This is a dangerous forum. If you choose to you can look up on line how these courts work.

Now there is no way, based upon what is written here for me, or any other attorney to advise you. What I would recommend is that contact myself and/or another Texas attorney, and get formal legal advice.

The above is not an acceptance of representation, nor legal advice. It is merely an informal suggestion that you secure the services of an attorney, if necessary, and protect yourself

[email protected] 281 704 6740

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Answered on 6/17/14, 12:54 pm


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